Three reasons why your company should offer Group Benefit Solutions
Looking at how benefits such as Group Life Insurance and Group Health Insurance pay off
Richard Branson famously said that “if you take care of your employees, they will take care of the clients”. Employees are, without a doubt, one of a company’s greatest assets. If you want your business to thrive, you need to hire talented employees that are driven, present and invested in your company’s success. Once you’ve found them, however, it’s crucial that you implement measures to retain them.
Offering Group Benefit Solutions has long been a well-recognised employee wellbeing tactic for multiple reasons:
It aids talent retention
One of the big arguments in favour of Group Benefit Solutions (such as Group Life Insurance, Disability, Critical Illness, Group Health Insurance and so on) is linked to talent retention. Besides the practical and emotional costs of losing an employee, there’s a high financial cost too. Gallup estimates this to be approximately one and a half to two times the employee’s annual salary.
Not to mention numerous other invisible costs, such as lost productivity and a dip in team morale, especially when it involves leadership structures shifting. There’s also time lost in training up a new employee to consider, with The Balance Careers reporting that it takes approximately six to eight months for an employee to become fully productive within a new organisation.
It can be a cost-effective form of enhancing compensation
A recent ‘2020 Engagement and Retention’ report by Achiever found that out of up to 64% of all North American employees surveyed who said they may leave their jobs in 2020, 52% cited compensation as the top reason for looking elsewhere. Depending on how big the pool is and how low the risk and premiums are, Group Life Insurance can be a very cost-effective way for you as the employer to further compensate your employees.
There’s also the compelling advantage for the employer of the perceived benefit (in the eyes of the employee) being far greater than the actual cost for the employer. An employee earning a $50 000 salary, insured for three times their salary, along with 50 other colleagues (aged between 30 and 75 years) might cost an employer between $1000 and $1500 a year. To the employee, however, the perception is that the employer’s cost to care for their family, should something happen to them, is a generous $150 000 dollars. This perception versus cost benefit for the employer should not be underestimated.
And finally, it shows you care
Company culture plays a vital role in employee happiness (which, in turn, has strong links to employee productivity). Global job and recruiting site Glassdoor surveyed more than 5 000 workers from the United States, United Kingdom, France and Germany to measure the sentiment around and importance of mission and culture in the workplace today. The results may surprise many corporates out there:
“…more than 77% of adults would consider a company’s culture before applying for a job there, and 56% say company culture is more important than salary when it comes to job satisfaction.”
A company that cares goes a long way towards cultivating happier, more loyal employees. Offering Group Benefit Solutions lets employees know that your company values them – and that their families are valued too. And as more companies prioritise corporate culture and value-add benefits, more employees are viewing benefits as a key point of consideration in their career moves.
If you still think that the costs will far outweigh the benefits, chat to your broker or financial advisor about how Group Benefit Solution policies can be scaled and calculated according to your company’s employees, your company’s needs, your industry and your budget.
To learn about Unilife and our Group Benefit Solutions, click here.